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Thursday, June 17, 2010

Gold Explodes Again on Weak Economic News

The attempt to paint a rosy economic picture is being ignored or not believed by investors, and gold prices are again exploding upward as it's considered the safest place to put your money in these difficult times.

At just before 1:30 PM EDT, spot gold prices were at $1,247 an ounce, a gain of $16.50 for the day.

People are starting to see that every time new, negative or weak economic data come out, the term "surprising" or "unexpected" is used, implying either the economists and government are completely inept, or it's a buzzword used in an attempt to manipulate people into thinking it's a temporary situation.

That strategy is no longer effective, as what is really being seen is when you use those terms month after month, the inevitable conclusion is there is no real recovery, and it's highly unlikely we've ever moved out of the recession in the first place.

No matter, gold prices are reflecting the growing disbelief in the economy picture attempted to be painted by the Obama administration, and other governments around the world.

Date from China, Europe and the United States confirm we're still in economic trouble, and gold prices will continue to rise in response to that economic reality.

One confirmation of this is the latest consumer price index data which dropped 0.2 percent in May, the largest fall since December 2008, confirming demand is slow and retailers are having to continue to cut prices in order to encourage consumers to spend.

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